Maybe he won’t be able to develop any new drugs in the future, or he may develop one, ten, or even more drugs. How can we determine their specific value?
This kind of illusory value is difficult to quantify directly with any capital. Both parties will never be satisfied, so it is naturally impossible to reach an agreement.
Unless only shares are sold but Chen Xuan is not included, the actual valuation can be achieved. However, AbbVie will not want such an Aetna Pharmaceutical Group without him because it is meaningless.
"As for the lung cancer drug, I said I don't want to sell it."
"But if the benefits are great enough, I might consider transferring it. What would be considered a great benefit?"
"That means I'll only consider selling the new drug if I can at least get all the profits for five years at once."
Chen Xuan stated his conditions very directly.
The total profit of a new drug within five years of its launch is its bottom line price.
If the other party can do it, then he may consider transferring the patent.
"Five-year returns?" Gao Tianlong frowned slightly. "Mr. Chen, what do you think the returns for these five years should be?"
He didn't quite understand what the other person said.
Five-year return is a very general concept and it is difficult to determine a specific value.
However, if it is reasonable, this request is not too much.
But the biggest question is how much profit Chen Xuan’s lung cancer drug can generate within five years.
"200 billion a year, 1000 billion in five years!"
"This is my assessment of my new drug." Chen Xuan said seriously.
That's right, he believes that the special medicine for lung cancer can generate 1000 billion yuan in revenue within five years.
He also believed that only an acquisition value of 100 billion yuan would make him consider selling the formula.
"what?"
"1000 million?"
"Mr. Chen, you are not kidding me, right?"
Gao Tianlong was stunned. He didn't expect to hear such an outrageous price.
AbbVie offered 200 billion, but unexpectedly, Chen Xuan directly offered 1000 billion. This is simply...
For a moment, he was a little out of control.
"I don't like joking."
"Especially with people I don't know well, I'm even less likely to joke around."
"I think this is a very reasonable price. If Mr. Gao and AbbVie think it's unreasonable, we can choose not to cooperate."
"Business is like this. The value of a product is determined by different perceptions. I might think it's worth the price, but you might think it's not."
Chen Xuan was very indifferent to Gao Tianlong's reaction.
From his tone, it can be heard that he does not think the price is exorbitant at all.
In his eyes, the price of 1000 billion is a completely reasonable price. Even if the other party thinks it is unreasonable, it will not affect his judgment.
"Mr. Chen, I think you should reconsider."
“Even if a new drug can be approved for marketing, it is very difficult to achieve a valuation of 1000 billion yuan.”
"To achieve 1000 billion yuan in revenue, we need at least 2000 billion yuan in revenue, and that doesn't even take into account the time cost. During this period, revenue must be far more than 3000 billion yuan to recover this cost."
"A revenue of 3000 billion yuan is unimaginable even in the pharmaceutical industry. It's basically impossible to achieve."
Gao Tianlong said in a hurried tone!
He even thought Chen Xuan was crazy for offering such an outrageous price.
But in the face of his anxiety, Chen Xuan just smiled faintly and then spoke calmly.
“Are the profits from drugs so low?”
"Especially for best-selling, high-priced drugs, will the profit only be 50%?"
"A profit of 1000 billion yuan requires 3000 billion yuan in revenue to achieve this? Does Mr. Gao think I'm a complete novice?"
After saying this, Chen Xuan's eyes showed a hint of mockery.
The other party thinks he is a scientist who knows nothing.
Do you think he only knows how to do experiments and has no understanding of market rules?
As we all know, medicines are highly profitable commodities, even more so than arms.
Especially for high-priced best-selling drugs, the profit margins are extremely terrifying.
The reason why pharmaceutical companies' profits are not 50% is that a lot of money is spent on research and development and other expenses.
For example, various transfer payments are offset by these profits, which reduces the profit margin.
……
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